Thornton Corp

question 42

Multiple Choice

Thornton Corp. is based in the U.S. and has no foreign subsidiaries. It has extensive liabilities denominated in Indian rupees resulting from imports from India. However, Thornton's revenues are denominated solely in U.S. dollars. Which of the following is probably not true?

• A)Thornton would benefit from a depreciation of the Indian rupee.
• B)Thornton has at least some transaction exposure.
• C)Thornton has at least some economic exposure.
• D)Thornton has at least some translation exposure.
• E)All of the above are true.

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Definitions:

Divorced

The legal dissolution of a marriage by a court or other competent body, resulting in the termination of a marital union.

Single Person

Refers to an individual who is not currently married or in a romantic partnership.

Self-Reliance

Depending on one's own ability, judgment, or resources rather than those of others.

Financial Instability

A situation characterized by uncertainty and unpredictability regarding one's financial resources and security.